Tourism tax incentives flare up in S.C.

COLUMBIA — Pointing to last year’s hard-fought defeat of tax incentives for The Sembler Co. to build a shopping complex in Jasper County, Rep. Ralph Norman, R-Rock Hill, said allowing a high-profile tourism event to pocket all of its admissions taxes allowed government to pick winners and losers.

Nevertheless, the S.C. House approved such a budget specification by Rep. Jay Lucas, R-Hartsville, along with the $5.4 billion state general fund budget this week.

Proponents said the action would allow the state to spend a little in forgone revenue but reap a lot from the spin-off economic activity.

But Norman disagreed.

“I don’t know where you draw the line,” he said.

State law allows the Darlington Raceway event to keep half of the admissions taxes it refunds to the state, said Lucas. His proviso would allow the event to keep an additional $114,000. It applies to the Darlington race and to the Family Circle Cup tennis tournament.

The proviso does nothing to save the Heritage golf tournament in Hilton Head in the near term, but the event loomed on the House floor this week.

“The Senate could certainly consider it, but those two events were singled out,” said Lucas on Wednesday, the day the House budget was sent to the opposite chamber following Tuesday’s 77-42 approval.

“It’s nothing against the Heritage. It’s a great event,” added the House Speaker Pro Tempore, noting that lawmakers had offered help to Heritage in the past.

“Heritage is extremely valuable to our state, and we need to do things like this to help them stay.”

Rep. Bill Herbkersman, R-Bluffton, said the proviso, “sets the tone where people understand the economic impacts for local communities. It opens the door for the issue.”

The Heritage PGA Tour event is scheduled for next month, but officials are still trying to find a sponsor for next year’s event. Gov. Nikki Haley has said she opposes the use of public funds to support the tournament.